Whether you are an entrepreneur or an employee, understanding tax laws is one of the most challenging tasks. Moreover, any miscalculation or misinterpretation of the law can create a huge risk. Perhaps, this is why various people advise you to take the help of an accountant when working with taxes and the IRS.
However, is it the only option available for you? Indeed, No! Remember ‘whatever the situation is, there is always more than one option.’ and we are in total favor of this statement.
You must be getting confused and wondering what we are exactly talking about? Well, let us clear up this cloud of confusion. When we talk about taxes, particularly tax laws, instead of an accountant, you can also take the help of a ‘tax attorney.’
That’s right! A tax attorney for all your tax-related problems. But why?
The answer is- ‘accountant deals with numbers, but a tax attorney deals with the law.’ Not clear enough? No worries! Let us explain it in simpler terms the services provided by an accountant are limited to your bank accounts and financial statements only. S/he can suggest to you the techniques to maintain your account or investment options to reduce the tax payable amount.
However, an attorney can also provide you with similar services, along with handling your legal and technical issues. In addition to this, your tax attorney can also consult you about certain situations to eliminate its risk.
Wait! There are even more reasons to choose a tax attorney over an accountant. To know what those are, keep on scrolling.
A tax attorney has unique skills
The most basic reason for choosing a lawyer is because they have particular skill sets and knowledge. They can help you decide the future course of action and handle your hearing in the U.S. tax court. But, what are these unique skills? They are as follows:
- Conduct legal research and analysis: Unlike the accountants, a tax attorney doesn’t only rely on the accounting concepts written in the books but also uses tax laws in real life.
They conduct legal research using IRS (Internal Revenue Service) regulations, tax codes, and other sources. Besides, they also see more case studies and apply the results in their practice. They look for opportunities and risks because of their practical knowledge to provide you with the best tax advice.
- Work to protect the client’s rights: When dealing with the IRS and tax bureaucracy, the facts are not enough. You need to understand the timing of stating the right fact at the right point. Needless to say, that you need immense practice for that. A tax attorney deals with several cases every day and knows how to state an argument to protect his client’s rights.
- Have persuasive skills: The most impressive skill of any tax attorney or an attorney, in general, is that they know how to persuade others. They can convince you that you’re mistaken by stating facts and figures.
Believe us, finding your way out from the IRS is not at all easy. Perhaps, only these extraordinary persuasive skills can help you while dealing with the IRS.
- Understands the use of evidence: Usually, an accountant will tell you about the tax exemptions or benefits you can claim. However, you need physical evidence that can prove your eligibility. Lawyers understand this fact and work accordingly. They will help you identify the evidence and prove to the tax authorities that you can claim the said benefit. Isn’t it great?
Provides peace of mind
When you are in tax or legal trouble, the U.S. tax court provides you the option between representing yourself on your own or taking the help of an attorney. To be honest with you, in such a situation handling your case by yourself is not a wise option to choose as you don’t have all the insights about the tax laws and method to use it.
On the other hand, having a tax attorney by your side can change the entire outcome. They are professionals and can use the correct provisions of the tax code and their persuasive skills to convey their point to the IRS.
Besides, they practice regularly and are much familiar with the issues that you might be facing. So, they can ensure that the regulators adhere to the set protocols and provide you the peace of mind.
Handles different types of situations
Now that you know how beneficial a tax attorney is over an accountant. Let’s learn more about the different situations in which you can take the help of a lawyer.
- Taxable estate: IRS is not limited to personal tax returns. In fact, you have to file the return with the IRS if your property value exceeds $11.7 million (from 2021). A tax attorney can help you with estate planning so that the value doesn’t cross the exempted limit.
- Criminal investigation: It goes without saying that you need a tax attorney if you are handling a lawsuit against the IRS for criminal investigation, a.k.a tax fraud. Usually, your relationship with your attorney and everything you speak about is entirely confidential. Moreover, they are not legally bound to report to the judge everything you tell them. So, they can help you by using either the complete information or only a part of it.
- Starting a business: Setting up a business means hundreds of tax implications. Nonetheless, when it’s a startup, you need to focus on capturing the market and audience engagement. But, it is also true that you can’t ignore the taxes. In such a scenario, a tax attorney can guide you about your investments to save the taxes.
To Sum Up
Albert Einstein once said, ‘The hardest thing to understand in this whole world is tax.’
The account and tax attorney can help you with the tax filing and numbers, but only the tax attorney can ensure that you stay safe from all the legalities involved with the tax. They have practical knowledge, impressive skills, and also know when and how to use them. They can provide you great peace of mind and will be with you in every type of situation.